3 Steps to Starting Your Optometric Corporation

Why Every Optometrist in California Should Form a Professional Corporation

If you’re a licensed optometrist in California, you are not allowed to form an LLC or a general stock corporation for your practice.

Under the Moscone-Knox Professional Corporation Act (California Corporations Code §§13400–13410), optometrists must form an Optometric Professional Corporation (OPC) to legally provide optometry services.

Filing incorrectly can cause your corporation to be rejected by the Secretary of State, expose you to lawsuits, tax penalties, or even disciplinary action from the California State Board of Optometry.

At All-in-Juan Business Consultancy Services, we’ve helped thousands of licensed professionals, including optometrists, establish compliant Professional Corporations across California.

📩 Email: [email protected]

What Is an Optometric Professional Corporation?

An Optometric Professional Corporation is a legal entity that allows licensed optometrists to operate their practice in compliance with state law while receiving the liability protection and tax benefits of a corporation.

It must be registered with:

• The California Secretary of State

• The California State Board of Optometry

All Professional Corporations in California are governed by the Moscone-Knox Professional Corporation Act, which outlines who may own shares, naming requirements, and other compliance obligations.

Why Choose an S-Corporation Election

By default, professional corporations are taxed as C-Corporations, which can result in double taxation (at both the corporate and personal level).

By filing IRS Form 2553, your corporation can elect S-Corporation status, allowing profits and losses to pass through to shareholders, which offers:
✅ Reduced self-employment taxes
✅ Simpler tax reporting
✅ Protection from double taxation
✅ Greater flexibility in income distribution

3 Steps to Starting an Optometric Professional Corporation in California

Step 1: File Your Articles of Incorporation

Submit your Articles of Incorporation for a Professional Corporation with the California Secretary of State, specifying your intent to operate as an Optometric Professional Corporation under the Moscone-Knox Act.

Step 2: Complete All Regulatory & Tax Requirements

Once incorporated, you must:

• Apply for your EIN from the IRS

• Appoint Directors

• Draft your corporate bylaws

• File your Statement of Information with the Secretary of State

• File Form 2553 to elect S-Corporation tax status

• Pay annual taxes to the California Franchise Tax Board (FTB)

• Register with the Employment Development Department (EDD) if you pay salaries

• Apply for local business licenses or permits

Step 3: Let All-in-Juan Handle It for You

Our team at All-in-Juan Business Consultancy Services will handle every step of your corporation formation—from filing to registration—ensuring your business complies with California’s professional practice laws.

📩 Email: [email protected]

Benefits of Forming an Optometric Professional Corporation

Forming your corporation provides multiple advantages:
✅ Personal Liability Protection — Shields your personal assets from business-related debts and lawsuits.
✅ Tax Efficiency — Elect S-Corp status to reduce self-employment taxes.
✅ Professional Compliance — Stay compliant with California’s Moscone-Knox Act and the Board of Optometry.
✅ Business Credibility — Build business credit and operate as a legally recognized corporate entity.

Naming Requirements for Optometric Professional Corporations

Your corporate name must:

• Include your name or the last name of one or more current, past, or prospective shareholders.

• Include one of the following suffixes:

  • “Optometric Corporation”

  • “A Professional Corporation”

  • “Professional Corporation”

  • “Prof. Corp.”

  • “P.C.”

  • “Inc.”

  • “Corporation”

  • “A California Professional Corporation”

If the named shareholder dies or leaves the corporation, the Articles of Incorporation must be amended to remove their name within two years.

❌ “LLC” cannot be used in the name of any optometric business in California.

Who Can Be a Shareholder in an Optometric Professional Corporation?

Under California law:

• At least 51% of shares must be owned by licensed optometrists.

• The remaining 49% may be owned by:

  • Physicians and Surgeons

  • Podiatrists

  • Psychologists

  • Registered Nurses

  • Marriage and Family Therapists

  • Clinical Social Workers

  • Physician Assistants

  • Chiropractors

  • Acupuncturists

  • Naturopathic Doctors

However, non-optometrist shareholders cannot out number optometrists, and their total ownership cannot exceed 49% of the corporation.

If a shareholder becomes disqualified or ineligible to practice optometry, they must transfer their shares to a qualified shareholder within 90 days to maintain compliance.

Can an Optometrist Form an LLC in California?

No.
Optometrists cannot form or operate as an LLC in California under the Moscone-Knox Professional Corporation Act.

To legally practice optometry, you must establish a Professional Corporation.

Can an Optometric Corporation Use a DBA or Fictitious Name?

Yes — optometrists may operate under a fictitious business name (DBA) as long as they:

• File a Fictitious Business Name Statement within 40 days of starting their practice

• File in each county where they operate

• Ensure the name is not misleading or deceptive

Example:
✅ Dr. Lopez Vision Group, A Professional Corporation
✅ BrightSight Optometry, Inc

Start Your Optometric Corporation the Right Way

At All-in-Juan Business Consultancy Services, we help California optometrists form their Professional Corporations correctly under the Moscone-Knox Act — saving time, ensuring compliance, and avoiding costly errors.

We’ve already helped thousands of licensed professionals do the same. You could be next.

📞 Contact Number: +1 424 407-3686
📩 Email: [email protected]
🌐 Website: www.all-in-juanbusinessconsultancyservices.com

All-in-Juan Business Consultancy Services — Helping California’s Licensed Professionals Build, Protect, and Grow Their Practices Legally and Efficiently.